Investing.com -- Tesla (NASDAQ:TSLA) took a step toward launching its long-promised robotaxi service in California, securing the first of several necessary approvals, a state regulator said, sending the carmaker’s shares rising nearly 4% in premarket trading Wednesday.
The California Public Utilities Commission (CPUC) granted Tesla a transportation charter-party carrier (TCP) permit, which is typically issued for chauffeur-driven services. This license allows the company to manage a fleet of vehicles and transport employees on scheduled trips.
While the permit is a required step toward offering an autonomous ride-hailing service, a CPUC spokesperson clarified that it “does not authorize them to provide rides” in self-driving vehicles and does not permit Tesla to offer ride-hailing services to the public.
Tesla initially applied for the TCP permit in November 2024 but has yet to seek additional approvals needed to operate driverless taxis, according to the regulator. To move forward, the company must also obtain permits from both the CPUC and the California Department of Motor Vehicles (DMV).
Currently, Tesla only holds a DMV permit for testing autonomous vehicles with a safety driver. A DMV spokesperson confirmed that Tesla has not applied for any new permits required for fully autonomous operations.
As Tesla faces slowing sales growth, CEO Elon Musk has shifted focus toward robotaxis, pledging to roll out driverless ride-hailing services in California and Texas this year.
In October, the company introduced the Cybercab, a robotaxi prototype designed without a steering wheel or pedals.
Musk said in January that Tesla plans to launch “autonomous ride-hailing for money” in Austin this June and intends to introduce an “unsupervised” version of its Full Self-Driving (FSD) system in California later this year, though he provided few details.
He also said the Cybercab, Tesla’s planned robotaxi, is set to enter production in 2026 and will be available for purchase at under $30,000.
However, industry experts caution that the challenges and costs associated with developing autonomous technology could delay the commercialization of Tesla’s robotaxi service for several years.